2008 virginia common interest community legislation
DESCRIPTION
2008 Virginia Common Interest Community Legislation. presented by Lucia Anna Trigiani MercerTrigiani Alexandria, VA. Overview. House Bill 516 and Senate Bill 301 Recommendation of the Housing Commission Collaborative effort: Community Associations Institute - PowerPoint PPT PresentationTRANSCRIPT
PRESENTED BY
LUCIA ANNA TRIGIANI
MERCERTRIGIANI
ALEXANDRIA, VA
2008 Virginia Common Interest
Community Legislation
House Bill 516 and Senate Bill 301Recommendation of the Housing
CommissionCollaborative effort:
Community Associations Institute Virginia Association of Community
Managers Virginia Association of Realtors
Lawyers and Accountants
Overview
Eleven Member Citizen BoardProperty Registration ProgramsManagement Firm LicensureManagement Firm Employee CertificationInsurance Requirements StrengthenedCommon Interest Community
OmbudsmanResale – Condominiums and Property
Owners’ Associations
Overview
Polling Question
Which part of Virginia are you from?
A) Northern VAB) Hampton/ Virginia BeachC) Central VA/ RichmondD) Southwestern VAF) I’m from a different state
Appointed by Governor3 common interest community managers1 community association attorney1 community association accountant1 representative of the time-share
industry2 developer representatives3 citizens:
2 residents 1 current or former board member
Citizen Board(Section 54.1-2348)
FeesStandards of
ConductEducation-
based certification program
Board Regulations(Section 54.1-2349)
Promulgate RegulationsEstablish licensure criteriaEstablish criteria for
certificationApprove criteria for
accredited training programs
Approve accredited training programs
Enforcement
Board Powers & Duties – Managers(Section 54.1-2349)
Adopt and repeal rules, regulations
Seek injunctive relief Intervene with declarant or
developerAssess a monetary penalty of not
more than $1,000.00 per violation
Issue cease and desist orders (Section 54.1-2352)
Board Powers & Duties – Associations(Section 54.1-2351)
October 1, 2008 (Governor recommendation – January 1, 2009) – Entities offering management services must obtain and maintain license
July 1, 2011 – Condition of license renewal that employees are certified
Blanket fidelity bond or Employee dishonesty insurance minimum $10,000.00
Management Firm License(Section 54.1-2346)
Good standingCode of conductInternal accounting
controlsAnnual independent
review or auditProvisional license - 2011
Management Firm License (cont’d)(Section 54.1-2346)
ExperienceAccredited Association Management
Company (AAMC) DesignationOther
Completion of Board-approved training program and examination
Virginia Testing Program Quality of Virginia education Competence
Management FirmLicense Criteria
Principal responsibility for management services
Supervisory responsibility for employees who participate directly in provision of management services
Certification/Designation: Certified Manager of Community Association (CMCA) Association Management Specialist (AMS) Professional Community Association Manager (PCAM)
Manager Certification Criteria
Other Completion of Board-approved training
program and examination Virginia Testing Program
Quality of Virginia education Competence
Manager Certification Criteria (cont’d)
Certain employeesAssociation
employeeCommunity
association resident – uncompensated
Community association board member – uncompensated
License Exemptions
Receiver or TrusteeLicensed attorneyLicensed certified
public accountantLicensed real estate
broker or sales agentTime-share managing
agent
More License Exemptions
Polling Question
What is your role in the community association industry?A) Community ManagerB) Management ExecutiveC) Board MemberD) Home or unit ownerE) Business PartnerF) Other
In addition to coverage required in documents Blanket fidelity bond or employee dishonesty
policy Losses resulting from theft or dishonesty by:
Officers, directors, employees Managing agent or management employees
Minimum of $10,000.00Lesser of:
$1,000,000.00, or Reserve balances plus ¼ average
annual assessment
Association Insurance Requirements(Section 55-79.81 and Section 55-514.2)
A fixed fee – as established by the Board
Annual assessment equal to the lesser of: $1,000.00 or such other
amount established by the Board; or
.02 percent of gross assessment income for preceding calendar year
Association Annual Report Fee(Section 55-79.93:1 and Section 55-516.1)
Certificate for ResaleAssociation
Disclosure PacketManner of DeliveryFees charged and
when collectedContents of
Certificate or Packet
Resale Disclosure
Electronic or hard copy, upon seller/agent request
Written request Electronic or hard copy Complete contact information of parties to
whom deliveredMay request hard copy in person at
principal place of businessNo extra fees may be charged for use
of electronic network2 copies
Delivery
Inspection – a fee not to exceed $100.00Paper format – a fee not to exceed $150.00Electronic format – a fee not to exceed
$125.00At the option of the seller or his authorized
agent: Expedited (5 business days), inspection, preparation
and delivery of certificate or packet - $50.00 Additional hard copy – a fee not to exceed $25.00 Delivery charges – actual costs
Post-closing fee to purchaser, collected at settlement – a fee not to exceed $50.00
Fees (Section 55-79.97:1 and Section 55-509.6)
Fee schedule must be publishedCannot be collected at time of requestCollected at settlement, out of
settlement proceedsSeller is responsible for costs of
certificateIf settlement does not occur within 90
days of delivery or funds are not collected at settlement, fee becomes a charge against the property
Collection of Fees
Maximum allowable fee Adjusts every 5
years January 1st of that
year Annual increases
in CPI-U (all urban consumers)
Fee Adjustment
Purchaser or Seller may request an update for a: Certificate/Packet issued within
preceding 12-month period 10 days to deliver
Settlement agent may request a financial packet 3 business days to deliver
Fee – not to exceed $50.00 Inspection – not to exceed $100.00
Updates
Failure to deliver: actual damages – not to exceed $1,000.00
Penalty
Actual costs – not to exceed $100.00
Copy charges limited to $.10 per page
Updates – not to exceed $50.00
Property Owners AssociationSelf-Managed
(Section 55-509.7)
Any known post-closing fee charged by manager
Approved minutes of board or association meetings for the preceding 6 calendar months
New Disclosure Statements (Section 55-79.97 and Section 55-509.5)
Break for Questions
Using your chat feature, located to your left, feel free to send in any questions you may have at this point.
Common Interest Community Ombudsman
Common Interest Community Recovery Fund
Common Interest CommunityManagement Information Fund
Member in good standing – Virginia State Bar
Assist members in understanding: Rights Processes available under declaration and
by-lawsAnswer inquiriesProvide information concerning common
interest communitiesMake information available via websiteReceive notices of complaint
Ombudsman(Section 55-530)
Maintain data on Inquiries received Types of assistance
requested Notice of complaints Actions taken Disposition of each
matter
Ombudsman (cont’d)
Assist members in using procedures and processes available in association, including: Nonbinding explanations of laws and
regulations by the Board Referrals to public and private agencies
offering ADREnsure access to Office of OmbudsmanEnsure timely response
Ombudsman (cont’d)
Upon request to Director, by General Assembly standing committees or Housing Commission: Assessment of proposed and existing laws Other studies of common interest communities
Monitor changes in federal and state laws relating to common interest communities
Provide information for annual report by Director
Carry out activities as the Board determines
Ombudsman (cont’d)
Procedures for resolution of written complaints Common Interest
CommunityBoard to establish by
regulation Association members Others
Complaint Resolution
System shall include Record of each complaint – maintained for
at least one year Association-provided complaint forms or
written procedures including Contact information for the association or
manager Contact information for office of ombudsman Clear and understandable description of
complainant’s rights to give notice of adverse decisions
Complaint Resolution (cont’d)
Complainant may give notice of final adverse decision in accordance with Board regulations
Notice filed Within 30 days of final adverse decision On forms prescribed by the Board Including copies of all records
pertinent to decision $25.00 filing fee
Complaint Resolution (cont’d)
Director may request additional information
Association must provide information – reasonable time
Director may determine that final adverse decision is in conflict with laws and regulations or interpretations by the Board - nonbinding
Complaint Resolution (cont’d)
$25.00 – common interest community manager upon initial application
$25.00 – each association upon filing first annual report
After 2011 – minimum balance in fund must be $150,000.00
If funds are insufficient, Board may make an assessment against association and common interest community managers
Recovery Fund
Conclusion
Final Questions?
LUCIA ANNA TRIGIANIPRINCIPAL
MERCERTRIGIANI
2008 Virginia Common Interest Community Legislation
Thank you!